Down 30% in 3 Months, Is It Time to Worry About XRP?

XRP (CRYPTO: XRP) is doubtlessly in a brutal rough stretch, with its price down by 30% in the last three months alone. Of course, it isn’t alone, with much of the rest of the crypto sector hurting quite badly as well.

So, is this a sign that the big crypto experiment is over for everyone, including Ripple (XRP’s issuer)? Or is this just a case of a strong coin getting dragged down by poor sentiment that it didn’t contribute anything material to in the first place?

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Let’s get some clarity on a few key points before continuing.

First, there hasn’t been any big negative news reported about XRP over the last few months that would invalidate its investment thesis. Nor has the coin been doing that well over a slightly longer period. It’s down by 41% in the last six months and was trending slightly downward even before the Oct. 10 crypto flash crash, which it still hasn’t recovered from.

That crash, which wasn’t caused by factors related to XRP or its fundamentals in any way, generally left the entire crypto sector in a state of shock, dysfunction and thin liquidity, which persists for the most part to this day.

Beyond that, there has actually been an influx of capital to XRP’s chain in the form of stablecoins. In late October 2025, there was around $208 million in stablecoin value parked on the XRP Ledger (XRPL), and as of Jan. 26, there was $407 million. So, one of the asset classes that’s a critical ingredient in the economic health and strength of the chain is expanding, despite the native token’s price declining.

In the same vein as the growth of stablecoins on the network being a bullish sign, the bear thesis for XRP is that its long-term upside depends on real usage by payment companies and financial institutions. If regulators in key hubs shut doors or Ripple stops winning licenses to operate in new jurisdictions, it’d be a sharp fundamental hit.

But so far, that axis looks more like an expansion than a retreat. Ripple said that in early 2026, it received a Dubai Financial Services Authority (DFSA) approval to provide regulated crypto payments in the Dubai International Financial Centre (DIFC) with its stablecoin, marking an important new jurisdiction in its roster. And in December 2025, Ripple said that one of the financial regulators in Singapore had approved an expanded scope for its payment activities under its existing license approved in 2023. So, there’s nothing bearish going on here.

Furthermore, the XRPL continues to add features that target institutional investors and financial institutions, including an automated market maker (AMM). Put together, there’s no reason to panic here despite XRP’s unfavorable price action recently.

As long as the chain’s technology keeps improving its features, onboarding more stablecoin capital, and continuing to get more permissions to operate in important financial centers, its fundamental value will continue to rise over time. With luck, its price will match those fundamental value gains soon enough.

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Alex Carchidi has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends XRP. The Motley Fool has a disclosure policy.

Down 30% in 3 Months, Is It Time to Worry About XRP? was originally published by The Motley Fool